The Central Bank of Nigeria (CBN) has introduced stricter eligibility requirements for Point of Sale (PoS) operators, barring individuals with outstanding debts, blacklisted Bank Verification Numbers (BVNs), or records of financial misconduct from participating in the booming agent banking industry.
The new regulation, part of the revised Guidelines for the Operations of Agent Banking in Nigeria released on October 6, 2025, is designed to strengthen integrity and transparency in the sector — one that has become vital to Nigeria’s financial inclusion efforts but increasingly vulnerable to fraud and operational risks.
Stronger Integrity Standards for Agents
According to the guidelines, individuals or businesses with non-performing loans in any financial institution within the last 12 months will no longer be eligible to register as PoS agents. The CBN explained that all applicants will now undergo credit verification through licensed credit bureaus to prevent defaulters from re-entering the financial system through PoS operations.
The apex bank further stated that anyone whose BVN is on a watchlist, or who has been blacklisted for fraud, dishonesty, or related offences, will also be disqualified. Similarly, individuals convicted of criminal offences or declared bankrupt, as well as companies undergoing insolvency proceedings, will not be permitted to operate as agents.
The policy represents a decisive shift from merely monitoring transactions to assessing the financial character and trustworthiness of those managing last-mile financial services.
New Eligibility Conditions for PoS Operators
For those seeking to become agents, the CBN outlined new minimum qualification standards. Prospective agents must:
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Demonstrate capability to perform basic services such as deposits, withdrawals, transfers, and bill payments.
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Submit all mandatory Know Your Customer (KYC) information required by CBN regulations.
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Obtain necessary licenses or authorisations from relevant authorities.
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Be at least 18 years old and of sound mind if applying as individuals.
In addition, banks, super agents, and licensed payment service providers (PSPs) — referred to as principals — are now required to conduct comprehensive due diligence before appointing agents. This includes verification of credit history, source of funds, criminal background, business address, and potential conflict of interest.
Cleaning Up a Fast-Growing but Risky Sector
Nigeria’s agent banking industry has witnessed rapid growth, with over 8.3 million registered PoS terminals and 5.9 million active deployments as of March 2025. These agents process billions of naira in transactions monthly, playing a crucial role in extending banking access to rural and underserved communities.
However, the surge in PoS adoption has also been accompanied by rising fraud cases, weak supervision, and misuse of agents’ licenses. The CBN’s new directive seeks to address these concerns by ensuring that only financially sound and credible operators remain in the system.
While the policy aims to protect consumers and maintain trust, it also introduces higher compliance costs for operators. Principals will now need to integrate BVN verification, credit checks, and background screening into their onboarding and monitoring processes.
Broader Reforms in the Agent Banking Space
The updated guidelines form part of a larger reform initiative by the CBN to modernize Nigeria’s payment ecosystem. Other measures include:
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Mandatory geo-tagging of all PoS terminals, ensuring that devices are traceable to their exact locations.
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Transaction and settlement limits to reduce systemic risk.
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Stiffer sanctions for institutions or agents that violate CBN rules.
In August 2025, the CBN directed all PoS operators to geo-tag their devices and align with the global ISO 20022 messaging standard within 60 days. The recent update extends the compliance deadline to April 1, 2026, giving operators more time to implement changes.
However, the central bank warned that non-compliant operators risk penalties, disconnection, or outright suspension once enforcement begins.
What This Means for the Industry
The CBN’s decision underscores its renewed focus on accountability and systemic stability in Nigeria’s growing digital payments space. By filtering out high-risk individuals and enforcing stronger oversight, the bank hopes to curb fraud, strengthen consumer confidence, and ensure sustainable growth in the PoS and agent banking ecosystem.
As the April 2026 compliance deadline approaches, both operators and financial institutions will need to tighten internal controls, upgrade compliance systems, and align with the regulator’s evolving framework to remain active players in Nigeria’s digital finance landscape.
